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Politics : THE WHITE HOUSE -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (11469)	11/28/2007 4:51:56 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 25737

Re: "The dollar's problem is not our foreign enemies" They CERTAINLY regard it as a financial problem for them if they are being paid in dollars, or if they have traditionally bought America's sovereign debt. In both cases they have lost a LOT of dough over the last year, and no one can be expected to be a fool forever about stuff like that. So --- expect to see (gradually at first... Iran, Venezuela... then Indonesia, Russia, Nigeria, the Emirates, etc.) oil in international trade to no longer be priced in DOLLARS, but rather priced against a 'market basket' of currencies (like say, Euro/Dollar/Yen/Pound/Swissie/Yuan or some such). And, expect to see foreigners SERIOUSLY cutting back their financing of our federal deficits (until and unless long bond rates SOAR). South Korea and Malaysia fired this first 'shot heard round the world' about two years ago... since then China has also cut back, Japan has cut back, the Arabs have cut back... and it's still in VERY early innings yet. Alternately, they will be buying up our companies, real assets like property and mines, timber lands, patents, etc., instead of our Treasury debt when they need to recycle their trade surpluses. It will be much worse before (or, 'if') it gets better. Re: "we should have had a recession already and let the markets operate freely..." When we DO move into a recession the debt will SOAR, because federal tax collections will PLUNGE. (PS --- a recession could have already begun... the official statistics that will be able to confirm that won't be available for at least six or nine months yet....) Be careful what you wish for! We are between a rock and a hard place. (If federal deficit spending isn't controlled --- soonest, if not 'yesterday' --- and the tax code isn't reformed [we are a high tax and very high loophole nation] you could see the next decade or more turning out a bust....) Bush has already done so much harm (or perhaps it would be more appropriate to say "both Bushes", since the father presided over equal or greater per-capita damage during his single term) that will have to be worked-out. And, that will take a long time, and a lot of hard work.